If the CPA Negligently Failed to Properly Prepare and File

question 62

Multiple Choice

If the CPA negligently failed to properly prepare and file a client's tax return, the CPA may be liable for

• A) the penalties the client owes the IRS.
• B) the penalties and interest the client owes.
• C) the penalties and interest the client owes, plus the tax preparation fee the CPA charged.
• D) the penalties and interest, the tax preparation fee, and the amount of tax that was underpaid.

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Definitions:

Respiratory Bronchioles

The smallest airways in the lungs, connecting the terminal bronchioles to alveolar ducts, and part of the pathway for air to reach the sites of gas exchange in the lungs.

Conducting Division

The part of the respiratory system including air passages that conduct air to the lungs, such as trachea and bronchi.

Major Bronchioles

Small airways in the lungs that branch off from the primary bronchi and lead to the alveoli, facilitating the passage of air.

Functional Residual Capacity

The volume of air remaining in the lungs after a normal, passive exhalation, which is crucial for continuous gas exchange in the lungs.